Revenue and Profitability - During the six months ended 30 June 2023, the sales of materials contributed a revenue of approximately HK$242.3 million, compared to HK$0 in the previous period[18]. - The Group recorded revenue of HK$242.4 million and gross profit of HK$20.3 million for the six months ended June 30, 2023, compared to nil in the previous period[32][36]. - The gross profit for the same period was HK$20.3 million, with a gross profit margin of approximately 8.4%[90]. - Operating profit for the period was HK$13.2 million, a significant improvement from an operating loss of HK$7.2 million in the prior year[90]. - The profit before income tax was HK$8.2 million, compared to a loss of HK$7.6 million in the previous year[90]. - The net profit for the period was HK$3.4 million, a turnaround from a loss of HK$7.4 million in the same period of 2022[90]. - For the six months ended June 30, 2023, the Group reported a loss attributable to the owners of the Company of HK$2,500,000, compared to a loss of HK$7,350,000 for the same period in 2022, representing a 66% improvement[164]. Business Operations and Developments - The Group established warehouses in the PRC in early 2021 to enhance inventory management and improve response times to customer orders[10]. - In October 2022, the Group established Hangzhou Junheng Building Materials Company Limited, which has improved the financial results of the Group through customer introductions for downstream expansion[17]. - The Group's sales of materials business faced a downturn in 2022 due to significant price fluctuations in aluminum-related products caused by various external factors[12]. - The Group temporarily ceased the supply of aluminum and related products to overseas customers in 2022 while exploring other business opportunities[12]. - The establishment of Hangzhou Junheng in October 2022 significantly improved the Group's financial performance by enhancing its sales network and customer base in the construction industry in the PRC[26][33]. Financial Position and Ratios - As of June 30, 2023, the Group's gearing ratio was 121.0%, a slight increase from 120.9% at the end of 2022[44][45]. - As of June 30, 2023, the total deficit attributable to the owners of the Company was approximately HK$47.1 million, an increase from HK$44.7 million as of December 31, 2022, primarily due to operating profit during the period[47][52]. - The Group's current assets and current liabilities were approximately HK$223.5 million and HK$381.4 million respectively, compared to HK$267.7 million and HK$434.3 million as of December 31, 2022[47][52]. - The current ratio remained stable at 0.6 as of June 30, 2023, consistent with the ratio as of December 31, 2022[48][52]. - The Group's total assets amounted to HK$344.4 million, down from HK$394.1 million as of December 31, 2022[95]. - Total liabilities decreased to HK$381.4 million from HK$434.3 million at the end of 2022[97]. Cash Flow and Liquidity - The company reported a net cash generated from operating activities of HK$9,856 thousand for the six months ended June 30, 2023, compared to a net cash used in operating activities of HK$(12,752) thousand for the same period in 2022[103]. - The company’s cash and bank balances increased to HK$23.1 million from HK$8.1 million at the end of 2022[95]. - As of June 30, 2023, the Group's bank and cash balances were approximately HK$23.1 million, insufficient to cover current liabilities of approximately HK$381.4 million, indicating significant uncertainty regarding the Group's ability to continue as a going concern[115]. - The Group's financial information has been prepared on a going concern basis, relying on the financial support of the Controlling Shareholder to meet financial obligations within the next twelve months[116]. Investments and Assets - The Group's investment properties include commercial units and lands in Yingkou city, Liaoning province, PRC[19]. - The investment properties of the Group, with a carrying amount of approximately HK$120.8 million, were pledged to secure certain borrowings as of June 30, 2023[50][54]. - The company’s investment properties were valued at HK$120.8 million, down from HK$126.4 million at the end of 2022[95]. - Consideration receivable from the disposal of investment properties was HK$83,106,000 as of June 30, 2023, down from HK$86,959,000, indicating a decrease of approximately 4.4%[179]. Debt and Liabilities - The total outstanding loans and interests amounted to approximately RMB241.6 million (equivalent to approximately HK$275.1 million), reflecting the Group's obligation under a civil judgement[84]. - The maximum obligation to the Bank under a civil judgment was approximately RMB241.6 million (equivalent to HK$275.1 million) as of June 30, 2023, up from RMB233.2 million (equivalent to HK$266.8 million) at the end of 2022, marking an increase of about 3.5%[185]. - The Group does not need to make additional provisions regarding the civil judgment as it is not certain about the repayment capability of the defendants[188]. Management and Governance - The Company fulfilled the Resumption Guideline imposed by The Stock Exchange, and trading in its shares resumed on May 5, 2023[73]. - The Company is committed to working towards the resumption of trading in its shares and has been in discussions with professional advisers to formulate a viable resumption proposal[72]. - The Company must demonstrate compliance with Rule 13.24 of the Listing Rules and announce all material information for shareholders and investors[76]. Staff and Administrative Expenses - The Group's administrative and operating expenses decreased slightly from HK$7.3 million in the previous period to HK$7.1 million in the current period[34][38]. - Staff costs for the period amounted to approximately HK$2.9 million, an increase from HK$2.2 million in the previous period[59][63]. - The total staff costs, including directors' emoluments, increased to HK$2,659,000 for the six months ended June 30, 2023, compared to HK$2,141,000 in 2022, reflecting a 24% increase[152].
环能国际(01102) - 2023 - 中期财报